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As Tangermann (2004: 40) argues: ‘The Uruguay Round has not only resulted in new legal rules and quantitative reduction commitments in the areas of market access, domestic support and export competition. It has also affected the nature of the policy debate in agriculture. The WTO has become a relevant factor in 13 Ideas, Institutions, and Trade agricultural policy making’. g. that foreshadowed in the URAA) might reshape the URAA and therefore set a framework for various farm policy reform options that WTO members might consider.
G. g. g. g. the Single Payment Scheme introduced by the EU in 2003); . export subsidies, either in explicit form, or for example, via the operation of state-trading enterprises; . cost-reducing measures, such as subsidies on fertilizers, fuel, seeds, and irrigation water; and . investment grants, sometimes in the form of subsidized credit, including payments for replanting vines, converting from conventional to organic production, etc. However, these measures to increase and stabilize incomes are all a bit of a policy chimera, because the increase in farm revenues engineered by these schemes, and similarly the full benefit of the input subsidies, will not be matched by a similar increase in farm incomes, as land (and other input) prices will rise, and more inputs such as fertilizers and fuel will be purchased as output expands.
Though Keynes highlighted the power of ideas, policy analysts have tended to give priority to interest-based theories rather than to ideational theories when explaining public policies. Indeed Brooks (1996: 367) suggests that ‘the political economy perspective is a theoretical rebuke to Keynes’. Usually, the interests of the key actors have been derived from their structural position in the economy. Public choice theory is perhaps the most prominent example of such an approach to public policy analysis.